FAQs

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What is the property tax rate for the City?

The City’s current property tax rate is $.4807 per $100 of assessed value. Therefore, the owner of a $100,000 home would pay City property taxes of $480.70. These taxes are collected by J. R. Moore, Montgomery County Tax Assessor/Collector, through an inter-local agreement.

The tax rate is broken down as follows: $.2623 for general maintenance and operations of the City, such as police protection, traffic control, street maintenance, parks and recreation, and general finance and administrative services, and $.2184 for repayment of debt service obligations.

What is the sales tax rate for the City?

The sales and use tax rate for the City if 8.25%. The State of Texas receives 6.25% and the City receives 2% of this tax. Of this 2%, 1% is used to support general operations of the City while 1/2% goes to the Oak Ridge North Economic Development Corporation and is designated to make infrastructure improvements to attract economic development to the community and 1/2% is used to decrease the local property tax rate.

What is the City's fiscal year?

The fiscal year runs from October 1 through September 30. The budgeting process for each fiscal year begins in April with departmental input for salaries and expenses. It is refined throughout the next few months by the City Manager and Finance Department. A Council workshop is held in July to go through the proposed budget line by line. Public hearings are held in August, if needed, depending upon the proposed property tax rate.

Council must give final approval to the budget in an open Council meeting by the end of August in order for property taxes to be included with the Montgomery County billing.